Multiple Choice
The marginal propensity to consume (mpc) is the:
A) amount by which disposable income increases when consumption increases by $1.
B) amount by which consumption increases when disposable income increases by $1.
C) percentage by which consumption increases when disposable income increases by 1%.
D) percentage by which disposable income increases when consumption increases by 1%.
Correct Answer:
Verified
Correct Answer:
Verified
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